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Some time since I have been to Edinburgh but I cannot imagine that cabbies would be all that keen on the idea - there would be the messing around with currency conversions and then they would have to change the dollars at a bank at possibly less favourable rates. Is there some particular reason why you cannot just pay in Sterling?

You will need to change some currency into GB pounds. You can get money from ATM's here, but will probably need a PIN and chip card. You can of course use debit or credit cards, but for small purchases such as taxis, cash is better. If you have an Amex, then only larger places such as supermarkets will accept it, some cafes and restaurants may not. P.S if you are also visiting England and Wales then the GB pound is accepted there too.

We are friendly over here really!

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this has to be a troll, why would any American be posting daft questions like this on the 4th of july unless he is in the pub knocking them back or a johnny no mates sitting at his computer waiting for his TV dinner to heat up in the microwave.